Nigeria: Shell Rules Out Force Majeure On Oil Export After Nembe Fire

Royal Dutch Shell has disclosed that it does not have plans to declare force majeure on Bonny Light exports after a fire in an area around a key pipeline. A force majeure is usually declared to protect an oil exporter against any liability with buyers because of its inability to meet obligation. Shell stated that the Nember Creek Trunk Line (NCTL) had not been impacted by a fire, having been shut since February 28, 2019. It stated: “The NCTL is one of the two key pipelines that transports oil from various fields to the Bonny Light export terminal. Shell’s local subsidiary SPDC operates exports from the terminal.” Meanwhile, Aiteo Group has commenced investigation to ascertain the cause of the fire that raked its operations in Nembe Creek, Bayelsa state. In a statement sent to Vanguard, the company stated: “On 2 March 2019, a suspected explosion occurred within the vicinity […]